Getting Trading Ideas from Studies

One source of trading ideas is to study market data in conjunction with studies to help you observe the direction and range of market movement. For example, charts with trendlines have been used for years to visually highlight the general direction of price movement and can be considered a rudimentary type of study. In a similar manner, the crossing of slow and fast moving average plots is frequently used to identify price reversals.

By using different studies on a variety of symbols and intervals, you can start observing how prices and volume change that may help you develop ideas and, eventually, trading rules that can be used to test for identifiable conditions. TradeStation includes a built-in library of common studies to help you with the process of observation and idea creation. In addition, using EasyLanguage, you can create your own custom studies to explore new ideas and methods.